SRSN.JK
Indo Acidatama Tbk PT
Price:  
50.00 
IDR
Volume:  
682,200.00
Indonesia | Chemicals
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SRSN.JK WACC - Weighted Average Cost of Capital

The WACC of Indo Acidatama Tbk PT (SRSN.JK) is 8.3%.

The Cost of Equity of Indo Acidatama Tbk PT (SRSN.JK) is 12.55%.
The Cost of Debt of Indo Acidatama Tbk PT (SRSN.JK) is 5.50%.

Range Selected
Cost of equity 11.00% - 14.10% 12.55%
Tax rate 23.30% - 24.00% 23.65%
Cost of debt 4.00% - 7.00% 5.50%
WACC 7.0% - 9.6% 8.3%
WACC

SRSN.JK WACC calculation

Category Low High
Long-term bond rate 6.6% 7.1%
Equity market risk premium 7.9% 8.9%
Adjusted beta 0.56 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.10%
Tax rate 23.30% 24.00%
Debt/Equity ratio 1.05 1.05
Cost of debt 4.00% 7.00%
After-tax WACC 7.0% 9.6%
Selected WACC 8.3%

SRSN.JK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for SRSN.JK:

cost_of_equity (12.55%) = risk_free_rate (6.85%) + equity_risk_premium (8.40%) * adjusted_beta (0.56) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.